CAI Capital Management Recaps Shred-Tech
Dow Jones LBO Wire, Wednesday, April 30, 2008
Matthew Monks
4/30/2008 - CAI Capital Management Co. has returned some of its investment in shredding equipment maker Shred-Tech Corp. via a dividend recapitalization.
The company's existing lender, the Bank of Nova Scotia, announced yesterday that it had provided an undisclosed amount of capital to refinance the Cambridge, Ont.-based company and return some capital to its shareholders.
CAI Capital and management bought the company in May 2004. Shred-Tech's 2007 revenue was more than C$60 million, and the company has projected 2008 revenue approaching C$70 million.
The company makes document shredders. Shred-Tech's President and Chief Executive Rob Glass said in a statement yesterday that the company's has been experiencing "solid growth" thanks to strong demand for mobile document shredding equipment in North America and Europe.
Bank of Nova Scotia executive Dino Fracassi said in a statement that Shred-Tech has been able to "pay down substantial amounts of debt" in spite of the credit crunch and "the difficult environment for Canadian manufacturers."
Toronto-based CAI Capital raised the C$375 million CAI Capital Partners & Co. III LP in 2003. LBO Wire reported last year that the company was talking to investors about raising between C$700 million and C$800 million for a fourth fund.
Officials at CAI weren't immediately available for comment.